Google acquired Zagat
Google announced on their blogthat they have acquired Zagat, the long-lived household name for restaurant reviews. Even though Google acquired Zagat officially on Sept. 8th, they insist that we’ll see restaurant reviews integrated into Google Search and Google Maps immediately. What comes to mind is that the last time I searched for a restaurant on Google the first link for the search results was of course a Google Places link, however not far behind was a Yelp listing. So what does this mean for Yelp? Probably that Google will favor Zagat for the number 1 spot, not good news for Yelp.
Google Acquired Zagat | What It Looks Like
I can remember when Zagat was nothing more than a print media guide to local restaurants. As a matter of fact according to a VentureBeat article covering the subject, “New York-based Zagat has provided consumer-survey-generated reviews for restaurants, bars, hotels and more for 32 years and now offers recommendations around the world. The service operates in 13 categories in more than 100 cities.”
Both parties are excited that Google acquired Zagat, here’s what husband and wife CEO’s had to say about the acquisition:
“This may be the most important announcement in our 32 years of business,” wrote Nina and Tim Zagat. “Nina and I will continue to be active in the business as co-chairs; however, the merger of our resources, expertise and platforms with those of Google will give us the opportunity to greatly expand. We have spent enough time with Google senior management to know that they fully share our belief in user-generated content, and our commitment to accuracy and fairness in providing consumers with the information necessary to make smart decisions about where to eat, travel and shop.”
http://venturebeat.com/2011/09/08/google-acquires-zagat/
Google Acquired Zagat | What It Means For Yelp
It’s obvious that Yelp is scrambling for innovative ideas to maintain their clientele and followers after finding that Google acquired Zagat, however they’ll feel the feel the hit regardless of what they do, that’s business. However, I don’t believe that because Google acquired Zagat that this will make Yelp obsolete in any way, shape, or form. Yelp has a large dedicated user base that won’t be going anywhere. Yelpers enjoy their rewards and status they receive from posting quality content. Its a tight-knit community that have remained dedicated even with competition from Google Places.
Yelp obviously realizes its independent edge, and thats probably why they didn’t hold hands with Google when they had the opportunity in 2009. In 2009 Google offered Yelp $550 million to acquire the company, but Yelp walked away. Google doesn’t take lightly to rejection and in 2010 they removed Yelp listings from Google Places. But you know what? Zagat does have a long reputation and status, thats probably the reason Google acquired Zagat, 32 years is a lot of time in the game, and you know who reads Zagat? My grandmother. Yelp has shaped and branded itself around our generation of web surfers, and I believe that they can weather the storm.